Share 
Louisiana regulators delayed DraftKings’ five-year license renewal and granted a four-month temporary permit while investigators review responsible-gaming concerns.
The decision adds to growing state and congressional scrutiny of sportsbook marketing and VIP programs, according to ProPublica.
Louisiana Reviews DraftKings’ Responsible-Gaming Practices
The Louisiana Gaming Control Board tabled the renewal at its Oct. 15 meeting. Board chair Christopher Hebert described ProPublica’s reporting as “very troubling.”
ProPublica’s earlier investigation reported that DraftKings granted VIP status to a reporter who displayed betting behavior associated with problem gambling. The reporter lost close to $6,000 over three weeks before receiving that status.
DraftKings representatives addressed regulators’ questions at the Louisiana meeting.
“We do not use artificial intelligence to target losing gamblers by any means,” Paul Liberman told the board.
Lori Kalani said DraftKings had shut down 175 accounts in Louisiana this year. A company spokesperson also told ProPublica that DraftKings “does not market to customers based on indicators of potential problem gaming.”
Ohio Proposes 48-Hour Marketing Pause
Ohio regulators proposed barring direct advertising or marketing for 48 hours after customers opt into responsible-gaming tools or change their settings.
The proposal follows reporting about promotional messages sent after a customer used those tools. ProPublica’s reporter lost nearly $4,500 betting on tennis within 24 hours before using responsible-gaming features. The first of four push notifications promoting betting opportunities arrived 30 minutes later.
Andromeda Morrison said Ohio had been working on the proposal for some time, but ProPublica’s story illuminated the issue.
The proposal also drew criticism from Keith Whyte. “I think the implication is that using a responsible gaming tool is a sign of a gambling problem,” he said.
Congress Seeks VIP Details as Other States Review Practices
Three congressional Democrats requested information from major sports betting and prediction market companies about VIP programs and related revenue. The signers were Sen. Richard Blumenthal of Connecticut and Reps. Paul Tonko of New York and Valerie Foushee of North Carolina.
DraftKings said it would respond after reviewing the request. In an Oct. 20 letter, FanDuel said its VIP program provides enhanced service and encourages customers to choose its platform.
New York gaming officials have proposed stronger artificial intelligence standards and responsible-gaming guidelines. Regulators in Maine, Massachusetts and Michigan said they are reviewing related issues.
New Jersey’s Jennifer Davenport said the state is monitoring recent press reports and is prepared to act against gaming regulation violations.
More from gamingtoday.com
- Louisiana Bettors Sue DraftKings and FanDuel Over Parlay Practices
- FanDuel, DraftKings Face Louisiana Lawsuit Over Alleged Addictive App Design
- Citizens: US Online Casino Growth Slows to Record-Low 12% in Q3
—
Source: As reported by ProPublica.
